Congress MLA’s candid remark on 'guarantee schemes' sparks row
June 25, 2026
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Home Bharat

Karnataka: Congress MLA’s candid remark on ‘guarantee schemes’ sparks row, fuels opposition attack over fiscal crisis

Senior Congress leader and CM's economic advisor Basavaraj Rayareddy’s candid remark about lack of funds due to guarantee schemes has sparked political uproar in Karnataka

IndreshIndresh
Jul 7, 2025, 12:40 pm IST
in Bharat, Karnataka
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The Congress government’s much-touted guarantee schemes have once again come under the scanner, not just from the opposition but now from within its ranks. Senior Congress MLA and Chief Minister’s Economic Advisor Basavaraj Rayareddy’s blunt remarks about the financial strain caused by the guarantee programs have triggered an uproar across Karnataka’s political circles, fueling the argument that the populist promises are stunting the state’s long-term development.

Rayareddy, a seasoned leader and Siddaramaiah’s trusted economic advisor, indirectly acknowledged the financial strain while speaking at the inauguration of a high school building in Ryavanika village of Kukanur taluk, Koppal district, on July 6. When a local farmer humbly appealed for a road to his farmland, Rayareddy’s candid response stunned many.

“If you want roads, then rice… I will advise CM Siddaramaiah to close everything,” Rayareddy quipped, implying that the state exchequer is so burdened by the Congress’s freebie schemes that there is barely any money left for basic infrastructure like roads and bridges.

The remark, though indirect, has validated the BJP’s persistent criticism that the so-called ‘guarantees’ — ranging from free bus travel to free electricity and monthly stipends — may be winning votes in the short term but are choking funds for essential development.

Opposition leaders were quick to latch onto Rayareddy’s admission. BJP MLA Arvind Bellad slammed the Congress’s approach, saying, “Basavaraj Rayareddy is not an ordinary MLA. He is Siddaramaiah’s own economic advisor. When he says there is no money for roads, it is clear proof that this government’s guarantees are draining the treasury. They are handing out freebies for votes but looting the people’s future.”

Belladone did not stop there. In a sharp dig at the alleged corruption under Congress rule, he added, “The poor are being shown doles, but ministers are busy looting. If the loot stops, development will automatically happen. Let Rayareddy speak the truth — he knows the reality better than anyone.”

Even Union Minister and JD(S) leader H.D. Kumaraswamy jumped into the fray, reminding people that Rayareddy has a history of slip-of-the-tongue confessions that expose the Congress’s contradictions. “This is not the first time Rayareddy has spoken out of turn. Every time, he clarifies later, but the truth slips out first. He has shown where the Congress government stands today — stuck between freebies and a development crisis. People should not expect any real progress from this government,” Kumaraswamy charged.

Chief Minister Siddaramaiah, under pressure to defend the core plank of his administration, dismissed the controversy and reiterated the guarantees. “There is no question of changing or withdrawing any guarantee scheme. They are for the poor. These programs are about economic and social empowerment. We are giving funds to MLAs to repair roads and bridges. We are also releasing grants for BJP and JD(S) MLAs. Development work is continuing,” he said.

However, many view Siddaramaiah’s reassurance as hollow in light of his own advisor’s open admission. Political analysts note that, while basking in the popularity of its populist schemes, the Congress has offered no clear roadmap for maintaining fiscal health while fulfilling these costly promises.

Across the state, voices are growing louder that the guarantees, though helpful to sections of the poor, are unsustainable in the long run if they come at the cost of roads, schools, hospitals and other vital infrastructure. Rayareddy’s statement has given fresh ammunition to the opposition’s narrative that the guarantees are a vote-catching tactic that risks pushing Karnataka into a debt trap.

Ordinary citizens, especially in semi-urban and rural areas, echo these concerns. Many say they do appreciate the support schemes, but not at the cost of delayed roads, poor connectivity, and crumbling rural infrastructure. “What good is free rice if we don’t have roads to reach the market or school?” a farmer in Koppal asked, summing up the sentiment.

Rayareddy’s slip has once again exposed the widening cracks within the Congress as its leaders struggle to balance populism with genuine development. With the Lok Sabha bypolls and panchayat elections ahead, this fresh controversy could snowball into a major headache for the ruling party, unless it clarifies how it will deliver on both its promises and its responsibility to build a better Karnataka.

Topics: Congress GovernmentCM SiddaramaiahBasavaraj RayareddyGuarantee schemesSenior Congress MLA
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